In order to keep the marketing at the highest position of the hotel industry, it is necessary to keep up with the movements on the tourist market, to modify strategies and include innovations in the hotel product. The strategy needs to be lead by the market and surrounding in which the enterprise provides its income. The purpose of business of the enterprise is to be expressed through the mission in which the main goals of the enterprise are determined. The theme of this thesis is marketing positioning of the Hotel Palma in Makarska. The purpose of the thesis is analysis of the temporary situation and conditions in this hotel in respect of the marketing mix, competitiveness of consumers and market trends. The thesis includes the terms of hotel marketing itself, description of features and importance of each element of marketing mix of services, as well as the influence of outer and inner factors of business activity. The concrete example of the hotel is described, together with all important terms related with hotel industry. The thesis also deals with the primary activities that need to be undertaken in order to achieve strategic goals and increase the competitiveness of the Hotel Palma. The politics of distribution and importance of distribution channels used by the hotel for the purpose of selling are also included in this thesis, because the promotion politics and guidance of certain promotion tools already used emphasize the importance of promotion in daily business hotel activities for the purpose of achievement of business goals.